Quick tip from someone who just went through this: if you're both making similar incomes, check the box in Step 2(c) on both of your W-4 forms AND have one of you claim the child on Step 3. We have a similar situation (I make $72k, husband makes $69k) and that worked perfectly for us last year. Also, the IRS has a Tax Withholding Estimator on their website that's pretty helpful: https://www.irs.gov/individuals/tax-withholding-estimator

One thing nobody mentioned yet - remember that having a child also means you might qualify for the Child and Dependent Care Credit if you're paying for childcare! This is separate from the Child Tax Credit and can be worth up to $2,100 depending on your income and childcare expenses. This doesn't directly affect your W-4 withholding, but it's something to keep in mind for your overall tax situation as new parents. Also, if either of you has access to a Dependent Care FSA through work, you might want to sign up during your next benefits enrollment!

I went through this exact scenario in 2022! Just make sure your timeline works - you need to have received unemployment for 12 consecutive weeks. I almost messed this up because I had a 2-week contract job in the middle that disqualified me. Also, save ALL your marketplace insurance receipts! I was audited and had to show proof of every payment. Such a pain but at least I had the documentation.

Just wanted to add another perspective on the documentation piece - I went through this same situation in 2023 and found it helpful to create a simple timeline document showing when I lost my job, when I received unemployment benefits, when I withdrew from my IRA, and when I paid health insurance premiums. The IRS publication 590-B has all the detailed rules, but the key things that worked in my favor were: 1) I received unemployment compensation for 12 consecutive weeks, 2) My IRA withdrawal happened during the year I was unemployed, and 3) I had clear records of paying health insurance premiums out of pocket during that time. One thing to note - if you had any employer-sponsored health coverage available to you during unemployment (like COBRA), that might complicate things. The exception is specifically for periods when you would have been eligible for unemployment compensation AND had no employer health coverage available. Also, don't stress too much about "tracing" the specific IRA dollars to insurance payments. The IRS understands money is fungible - as long as you can show you paid qualifying expenses during the right time period and meet the other requirements, you're good to go.

I'd really recommend taking a basic small business tax course. I did one at my community college for like $75 and it was soooo worth it. LLC taxation isn't actually that complicated once someone explains it to you in plain English. Also, get a separate business bank account ASAP if you haven't already! Makes tracking business income and expenses 1000% easier come tax time. I learned that lesson the hard way my first year lol.

As someone who went through this exact same confusion when I started my LLC two years ago, I totally feel your pain! Here are the key things I wish someone had told me upfront: 1. **Get that EIN immediately** - Even though Isabella mentioned you don't technically need one as a single-member LLC, get it anyway. It's free, takes 5 minutes online, and you'll need it for your business bank account (which you absolutely should open ASAP). 2. **Start making quarterly payments NOW** - With $42k in revenue, you're definitely going to owe taxes. The IRS wants 25% of last year's tax liability or 90% of this year's. Since this is your first year, estimate around 25-30% of your profit for federal taxes plus self-employment tax. 3. **Track EVERYTHING** - That laptop and hosting are definitely deductible. So are your phone bill (business portion), internet, office supplies, software subscriptions, even mileage to meet clients. I use a simple spreadsheet or app like QuickBooks Self-Employed. 4. **Home office deduction** - If you use part of your home exclusively for business, you can deduct it. Either use the simplified method ($5/sq ft up to 300 sq ft) or calculate actual expenses. The Schedule C really isn't that scary once you see it - it's just business income minus business expenses equals profit, then that profit goes on your 1040. You've got this!

22 My cousin actually works for the IRS (not giving tax advice, just sharing what she's told me). She said they have internal thresholds for what they bother to pursue, and it's WAY higher than $45. They're looking for significant underreporting, not pocket change. Focus on bigger tax planning issues as your sister gets older and starts earning more substantial income!

Your sister is absolutely fine! As a 16-year-old dependent with only $45 in jury duty income, she's nowhere near the filing threshold. The standard deduction for 2024 is $13,850 for single filers, and even for dependents, the threshold for earned income is much higher than $45. You don't need to amend your parents' return or file anything for your sister. The IRS has much bigger fish to fry than pursuing a teenager over $45 in jury duty pay. This amount is so small it's considered administratively insignificant. Keep the documentation for your records, but don't stress about it. Focus your energy on teaching her good financial habits as she starts earning more substantial income in the future!

I went through this exact same frustration last month! 😤 After reading through everyone's responses here, it sounds like there are several factors at play. I ended up calling TurboTax directly (took forever to get through) and they confirmed that the refund advance is only available with their paid versions AND you have to meet their eligibility requirements. Here's what I learned from my experience: - You need TurboTax Deluxe ($59) or higher - the free version doesn't offer it - Your AGI needs to be under $100,000 - Expected refund should be at least $500-$1,000 - It appears right after your refund calculation, before payment method selection - If you started your return before January 4th, you might need to start over I ended up just going with the regular direct deposit since I didn't want to pay the upgrade fee. Got my refund in about 10 days which wasn't too bad. Sometimes these "convenience" features end up costing more than they're worth! Hope this helps and good luck with your car repair! 🚗

Just wanted to chime in as someone who works for the IRS (though I can't give official tax advice here!). I've been seeing a lot of confusion about these refund advances lately, and while I can't comment on TurboTax's specific policies, I can share some general information that might be helpful. These advance products are offered by third-party financial institutions, not the IRS directly. The IRS doesn't control who gets them or when they're available. What we do see on our end is that people sometimes get confused about their actual refund timeline - if you e-file with direct deposit, most refunds are processed within 21 days, and often much faster during normal processing times. For anyone dealing with financial emergencies while waiting for their refund, you might want to look into: - Local credit union emergency loans (often have better terms) - Community assistance programs for car repairs - Payment plans with your mechanic Also, just a friendly reminder that you can check your actual refund status anytime at IRS.gov using the "Where's My Refund" tool. Sometimes the actual IRS processing is faster than people expect! Hope everyone gets their refunds soon and can take care of those important expenses. 📋